This time, the European Central Bank sits at the centre of a storm. It is a little odd. The Bank of International Settlements, which is the closest we have to a world central bank, the IMF and the OECD have turned into arch hawks. They have thrown out 80 years of economic theory, and turned their attentions to the financial crisis with pretty much the same tools policy makers used to approach the crisis of the 1930s.

They say we are not good at learning the lesson of history....Read More

This time, the European Central Bank sits at the centre of a storm. It is a little odd. The Bank of International Settlements, which is the closest we have to a world central bank, the IMF and the OECD have turned into arch hawks. They have thrown out...Read More

You may know, but the FT’s Martin Wolf has come up with a phrase to describe the world’s big export block, he calls it Chermany. China and Germany are similar in the sense that both have high savings, and both export more than they import.

There are always two ways of looking at things. Some might say: “It’s a scandal, now we have got to work until we drop.” Others might greet the news with glee, and thank their good luck that they won’t be put out to grass at 65. To an extent your...Read More

It was a bold Budget, all right. It was hailed as the most significant Budget in years, which is odd because they said much the same of Alistair Darling’s Budget of just a few months ago. You could say there are two key points that stand out. Firstly, George Osborne...Read More

We are told that for China strikes and unions flexing thier muscles is a good thing because low wages are a part of China’s problem. But in the West, workers just have to remove their heads from the sand.

The CBI has joined the debate. This morning it is releasing...Read More

This is the move economists and politicians have been waiting for. China doesn’t like it when the West blames it for all its ills. You can see its point. We spend money we don’t have, and then complain when China doesn’t spend like there’s no tomorrow.

It all boils down to the same thing. The French are preparing to outdo everyone and launch massive cuts in government spending.
Meanwhile, at Number 11 Downing Street, George Osborne has been burning the midnight oil. You can imagine the ideas clashing in his head: “Should I increase VAT...Read More

During the noughties we saw two conflicting forces. Globalisation led to rises in commodity prices, and in asset prices such as property. But for manufactured goods, especially high tech products, inflation was either modest, or even negative.

The latest data from the US had the headline consumer price index falling by...Read More

You may know, but the FT’s Martin Wolf has come up with a phrase to describe the world’s big export block, he calls it Chermany. China and Germany are similar in the sense that both have high savings, and both export more than they import.

There are always two ways of looking at things. Some might say: “It’s a scandal, now we have got to work until we drop.” Others might greet the news with glee, and thank their good luck that they won’t be put out to grass at 65. To an extent your...Read More

Where are the surplus countries to cut their wealth? Forget the euro, and sterling. The dollar may be enjoying its last hurrah. China absolutely does not want the yuan to fill that role. That leaves a certain yellow metal.

According to the FT, Saudi Arabia’s reserves of gold are twice...Read More